The new year is bringing a plethora of changes to the accounting industry, including a potential CPA licensure change. The National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) have created the CPA Evolution project in response to the need for an evolving licensure model.
The initiative’s aim is to transform the CPA licensure model to evolve with the changing skills needed in the accounting field today and into the future. The proposed new model focuses on the core of accounting and a disciplines licensure. New CPAs would be required to complete the core competencies of accounting, auditing, and tax and technology along with one of three disciplines: tax compliance and planning, business reporting and analysis, and information systems and controls. Each discipline would result in a full CPA licensure and would not limit a practice to that area. The proposed new model is reflective of the need for more substantive knowledge in one of these disciplines in practicing, resulting in a flexible model that will evolve with the profession. Going forward, NASBA and the AICPA plan on gathering more feedback in the beginning of the year and finalize the updated CPA licensure model in the summer 2020 with a multi-year implementation.
To read more about the new licensure requirements and listen to Neil Amato’s podcast, please click on the links provided below.
Submitted by: Sara-Kelly Hawes
Sources: National Association of State Boards of Accountancy (NASBA), American Institute of Certified Public Accountants (AICPA), and What’s Next for Potential CPA Licensure Changes – Podcast by Neil Amato, Journal of Accountancy